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Levels to watch: FTSE, DAX and Dow

It was Trump’s rally, and it is his again, with yesterday’s tax plan promise evidently providing the reason for fresh buying. 

Wall Street
Source: Bloomberg

FTSE 100 tested before potential all-time highs

The rally is now in full swing, having steadied during the week around 7150. The first key resistance area of 7276, is being tested, with 7348, and then 7359, in the way before the index can record fresh all-time highs.

Dips should continue to be bought and, with the index overbought intraday, some pullback is to be expected and even welcomed. 

DAX moving higher

Eurozone markets have joined the risk appetite party, and now we look to see if 11,800, and then 11,923, can be broken. A turn higher for momentum indicators, like the RSI, would seem to suggest there is plenty of strength behind the move.

It looks like a bottom has been established around 11,500, so as long as this holds, we could see a move higher, with dips acting as buying opportunities.

Dow on record high after tax promise

A new record high was recorded yesterday, and with bulls emboldened by Trump’s ‘phenomenal’ tax plan promise, we may see more gains here.

Those pointing to an overbought RSI, should remember how it remained overbought throughout November and December. Some support is possible at 20,150, but a bigger dip is possible and should not impair the new rally. 

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